Stalled Drilling is Harmful to the Economy

By January 3, 2011Economy, Energy

Today’s Wall Street Journal article “Drilling Is Stalled Even After Ban Is Lifted” simply points out what manufacturers have been facing all along – the lift on the moratorium on drilling in the Gulf of Mexico seems to be in name only and not in practice.  Although the Obama administration lifted the moratorium two months ago, manufacturers are still waiting for the green light to resume drilling. Companies are now faced with new procedures that will make receiving a permit a long and drawn out process.

This delay has a significant economic impact on manufacturers and other industries throughout the Gulf Coast and the nation.  According to the White House’s own assessment, approximately 8,000-12,000 people could lose their jobs as the delay in permitting continues.  The nation cannot afford this type of job loss, especially during a time when the unemployment rate is as high as 9.8%.  Additionally, any further delay will have considerable impact on the domestic oil supply where it is estimated that there may be a loss of 220,000 barrels of oil per day.

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